Majid Al Futtaim’s 2020 financial results revealed


February 24, 2021 | By RetailME Bureau

Alain Bejjani, CEO, Majid Al Futtaim – Holding

UAE-based Majid Al Futtaim today announced its audited operational and financial results for 2020. The company reported revenue of AED32.6 billion and EBITDA of AED3.8 billion, representing declines of 7% and 19%, respectively, driven by the impact of the COVID-19 pandemic. The company’s assets decreased 6% to approximately AED59.1 billion.

“Despite the extraordinary events of 2020, Majid Al Futtaim’s full year performance demonstrated the resilience of our people and business model, diverse portfolio, operational agility, proactive investments and prudent financial risk management,” said Alain Bejjani , Chief Executive Officer of Majid Al Futtaim.

From the onset of the pandemic, Majid Al Futtaim adopted a stakeholder-first strategy, including strengthening its engagement with governments across all markets. In order to guarantee a sustainable supply of fresh fruit and vegetables across the country, it partnered with the Ministry of Climate Change and Environment (MOCCAE) in the UAE, to boost the availability of locally grown produce across Carrefour UAE stores, by opening new distribution channels for more than 6,000 small and medium-sized local farmers.

Amid government-mandated closures and lockdowns, Majid Al Futtaim decided to forego rent at its 27 shopping malls across five markets to ease the financial burden on its tenants, while stores were temporarily closed.

The company accelerated its digital transformation journey to respond to the rapid shift to online, while offering tenants and small businesses new and innovative platforms to reach their customers with the launch of Marketplace and Trends at Your Doorstep. Click & Collect and Mobile Scan & Go to merge its online and offline experience. Once restrictions started to ease, it launched the Food Central at City Centre Deira, to offer a wholly unique take on mall dining, in response to changing consumer habits. 

Compared to 2019, Majid Al Futtaim – Properties registered a decline of 24% in revenue and 21% in EBITDA, standing at AED3.5 billion and AED2.3 billion, respectively.

The Shopping Malls business saw a decline in revenue due to temporary asset closures across the region, the proactive decision to forego tenant rent payments during closure periods and rent relief mechanisms to support tenants. During the second half of the year, the business experienced a gradual recovery in footfall as the economy started to reopen.

Majid Al Futtaim – Hotels experienced a 60% drop in occupancy rates due to asset closures for a prolonged period, and reduced demand as a result of border closures, travel restrictions and lower capacity.

 The company’s financial and liquidity position remains strong, with cash and available committed facilities covering its net financing needs for at least the next three years. The company’s debt maturity profile is light over the next couple of years, with no material debt maturity until 2023, and net debt position reduced to AED12.4 billion through rigorous focus on cash flow across the business.

Despite challenging macroeconomic conditions, the company’s BBB credit rating and ‘stable outlook’ have been reaffirmed by Standard & Poor’s and Fitch Ratings. This reflects the company’s healthy liquidity position, resilience of its diversified business model, proactive approach to tackling the Covid-19 crisis and continued prudent financial management.

Previous Article Next Article

SHARE

YOU MAY ALSO LIKE /


Dr. Dhananjay Datar Chairman & Managing Director ADIL Trading Co. LLC

Dr. Dhananjay Datar Chairman & Managing Director ADIL Trading Co. LLC holds 

Continue Reading

February 29, 2024 | By Rupkatha B
Hani Weiss, Chief Executive Officer, Majid Al Futtaim Retail

In 1995 regional retail conglomerate Majid Al Futtaim introduced Carrefour to the 

Continue Reading

February 26, 2024 | By RetailME Bureau
Prashant Parameswaran, Managing Director and Chief Executive Officer of Tata Consumer Soulfull

Tata Soulfull, a leading name in the ‘good-for-you’ snacks and breakfast cereals 

Continue Reading

February 22, 2024 | By Rupkatha B
Jean-Luc Graziato, Chief Commercial Officer of Majid Al Futtaim – Retail and Alia Al Harmoodi, Acting CEO of the Environment, Health and Safety Agency

Majid Al Futtaim – Retail, which holds the exclusive franchise to operate 

Continue Reading

February 20, 2024 | By RetailME Bureau
Krishna Dhanak, Managing Director, Alpen Capital

In an exclusive interview Krishna Dhanak, Managing Director, Alpen Capital shared insights 

Continue Reading

February 19, 2024 | By Rupkatha B
Majed M. Al-Tahan, Co-founder & Managing Director, Danube Online

As digital transformation across the retail industry continues to accelerate, the expectations 

Continue Reading

December 19, 2023 | By RetailME Bureau
Frederic Levy-Perrault, CEO, Al Raya Supermarket

Saudi Arabia-based grocery retail chain Al Raya Supermarket serves over 100,000 customers 

Continue Reading

December 15, 2023 | By RetailME Bureau
Ahmad AR. BinDawood, Chief Executive Officer, BinDawood Holding

BinDawood Holding has a rich Saudi heritage, spanning over 50 years, 38 

Continue Reading

December 13, 2023 | By RetailME Bureau
Majid Al Futtaim Retail commits to Collaborative Impact Goals at COP28

Majid Al Futtaim Retail, which owns the exclusive rights to operate Carrefour 

Continue Reading

December 8, 2023 | By Rupkatha B
BinDawood Holding Company earns Honorary Shield for Compliance Excellence

BinDawood Holding Company has earned an Honorary Shield, a distinguished recognition by 

Continue Reading

December 6, 2023 | By RetailME Bureau
First Movers Coalition for Food to create up to $20-bn value chain for sustainable farming

The World Economic Forum, with support from the Government of the United 

Continue Reading

December 5, 2023 | By RetailME Bureau
Food consumption in the GCC to grow at a steady pace

Food consumption in the GCC is set to grow at a CAGR 

Continue Reading

November 29, 2023 | By RetailME Bureau




Download Images RetailME Magazine